Warburg invests $120m in Indian cinema chain

The Canada Pension Plan Investment Board, Dutch pension fund PGGM and UK's CDC have also previously invested in PVR.

Global private equity firm Warburg Pincus invested INR 8.2 billion ($120 million; €113 million) for a 14 percent stake in India’s largest film and retail entertainment company PVR Limited, according to a company statement.

Mumbai-based private equity firm Multiples Alternate Asset Management offloaded a 9 percent shareholding while PVR owner Ajay Bijli sold 5 percent to Warburg.

Following the transaction, Multiples will remain an investor in PVR with its 14 percent stake while the company’s promoters will continue to own more than 20 percent of the company.

Warburg is in the process of deploying its 2015-vintage global buyout fund Warburg Pincus XII which raised $13.4 billion from investors such as the Florida State Board of Administration, Minnesota State Board of Investment and the New York State Common Retirement Fund.

Commenting on the transaction Vishal Mahadevia, managing director and co-head of Warburg Pincus India said: “Warburg Pincus is excited to invest in PVR, and has been impressed by Ajay’s passion and continued commitment to the business. The Indian film and entertainment market is expanding rapidly and we look forward to supporting Ajay and the entire management team during the next phase of growth.”

New Delhi-based PVR operates multiplexes across 48 cities in India and also engages in film production and distribution of Indian and international films.

Warburg is not alone as it seeks to capitalise on India’s fast-growing film and entertainment market – an industry expected to grow at a compound annual growth rate of 14.3 percent to INR 2.3 trillion by 2020 according to KPMG-FICCI Media and Entertainment report 2016.

The Canada Pension Plan Investment Board, Dutch pension fund PGGM, UK development finance institution CDC and consumer-focused private equity firm L Catterton (formerly L Capital Asia) have also previously invested in PVR.